Govt unveils Rs 1.75 trillion budget for FY 2023/24

Growth Projection at 6%, Inflation Projection at 6.5%

Focus on Austerity, Effective Capital Spending Planned

Kathmandu, May 29: Finance Minister Dr. Prakash Sharan Mahat has announced the budget of Rs. 1751.31 billion for the upcoming Fiscal Year 2023/24. 

The budget presented in the joint session of the Federal Parliament on Monday is larger by Rs. 63 billion than the ceiling set by the National Planning Commission. But it is larger by 16.37 per cent of the adjusted size of the current FY 2022/23 Rs. 1549.99 billion and 2.37 per cent smaller than the original budget size Rs. 1793 billion.

Then FM Janardan Sharma had presented the budget of this year while FM Bishnu Prasad Paudel had downsized it during the mid-term review in February. 

Experts have termed the move to reduce the budget a 'courageous move' of the finance minister. 

FM Dr. Mahat has allocated about two thirds of the budget -- Rs. 1141.78 billion (65.20 per cent) -- for recurrent expenditure which includes the allocations for the sub-national governments, maintenance of the infrastructure projects, and salaries and subsidies to be paid by the government. Rs. 400.8 billion will be transferred to the provincial and local governments. 

About 17.25 per cent of the budget (Rs. 302.7 billion) is allocated for development projects while 17.55 per cent or Rs. 307.45 billion is earmarked for financial provisions. 

Capital allocation has been reduced compared to the current year's allotment of 21.2 per cent or Rs. 380.38 billion. However, revenue collection of the government has remained dismal this year as it has mobilised only 35.6 per cent (Rs. 135.4 billion) of the total annual target with only 48 days of current FY remaining. 

Sharma's allocation included 42 per cent to recurrent expenditure, 24 per cent to sub-national governments and 12.8 per cent to financial provisions. 

Sources of the budget

FM Dr. Mahat said that Rs. 1248.6 billion revenue collection is projected for the next fiscal and it makes the largest source for the expenditures. The revenue estimates make about 71.3 per cent of the total expenditure estimates. Other sources for the expenditures include Rs. 49.94 billion foreign grants. 

The remaining sources would be managed from foreign loans of Rs. 212.75 billion and domestic borrowing of Rs. 240 billion. This means the budget has a deficit of Rs. 452.75 billion (25.85 per cent of the total size of expenditure). 

Presenting the budget at the parliament, Dr. Mahat said that the budget was designed aiming at achieving the economic growth rate of 6 per cent and containing inflation at 6.5 per cent. According to the Nepal Rastra Bank, the inflation rate in Nepal was 7.76 per cent in April. 

"To maintain prosperity, the budget will also be focused on building a digital and green economy. I have taken the priorities of the allocation bill as a suggestion to make the best use of resources. This budget has come to address the suggestions of the private sector and meet public expectations in order to instill hope," said FM Dr. Mahat.

He also said that the government had prepared the budget for the next year with the slogan of the second phase of economic reform and structural change of the economy.

However, he is likely to face a tough time in managing the resources since given the current year's performance future prospects don't look promising. The government could collect only Rs. 829.6 billion revenue and other payments against the expenditures of Rs. 1101.5 billion by Sunday, creating a huge gap between income and expenditure. 

Infrastructure development 

According to the budget speech of the finance minister, the government is making preparations to expand the 

access to electricity to all households across the country within next two years, and transmission lines, micro and small hydroelectricity projects, renewable energy from solar and wind would be developed to meet this objective.

He said that about 900 megawatt electricity would be added to the national grid in the next fiscal year with the contribution from 111 MW Rasuwagadhi, 102 MW Mid-Bhotekoshi, 42.5 MW Sanjen and many other private sector projects. If this goal is achieved, total installed electricity would be 3600 MW by the end of the next fiscal. Other projects that are included in the budget are the Project Development Agreement of West Seti, Seti River 6 and Lower Arun hydel projects, and finalising modality of 1,200 MW Budhigandaki and 635 MW Dudhkoshi reservoir projects. 

FM Dr. Mahat also said that he had allocated budget to the projects that could be completed in time with the estimated funds. He has drastically reduced the budget of the Ministry of Water Resources and Irrigation (MoWERI) and Ministry of Physical Infrastructure and Transport (MoPIT). 

Rs. 87.45 billion is earmarked for the MoWERI which is Rs. 21 billion less than this year. Likewise, the budget of MoPIT has come down by Rs. 30 billion to Rs. 131.59 billion.

Through the budget, the government has announced to complete 150 motorable bridges along the highways and strategic roads. Expansion of Suryabinayak-Dhulikhel road, and Kalanki-Basundhara section of Kathmandu Ring Road, underpass and flyover construction at the national highway including Saatdobato, Ekantakuna and Koteshwor in the Kathmandu Valley, Kathmandu-Terai Fast Track, Tokha-Chhahare Tunnel, Kaligandaki Corridor, East-West Highway, Karnali Highway, Postal Highway and many other roads and infrastructure projects have got their way into the budget of the next fiscal 2023/24. 

Signature bridge construction will be started on Narayani River and Tinau River. Simikot, the only district headquarters to be connected with the national road network, would be connected next year. 

Likewise, Minister Dr. Mahat said that a standard would be made to export stones and pebbles without harming the environment. 

Industrial development

The government aims to establish a chemical fertiliser plant in the country in a public-private partnership model via Investment Board of Nepal while for the next fiscal year Rs. 30 billion is allocated to subsidise the fertiliser purchase. 

Similarly, detailed survey and detailed project report of Dhaubadi Iron Mines would be prepared and excavation would begin in the next fiscal. Exploration and mining of petroleum products in Dailekh, iron in Nawalparasi and Parbat, granite, slabstone and ceramics in Makwanpur, limestone in Arghakhanchi and dolomite in Dhading would be carried forward to promote the mining industry in Nepal.

Technology assistance, awareness and training programmes would be conducted for the internalisation of the fourth generation industrialisation concept. Implementation of the fourth generation industrial concept in industries would be encouraged and facilitated.

The Finance Minister has made a significant effort in industrial reform with the announcement to opening of any business with just Rs. 100 paid up capital and free registration. 

Social security claims significant size For social security programmes including senior citizen allowance, Rs. 157.7 billion has been allocated which is higher than Rs. 23 billion compared to the allocation of current fiscal year. 

The senior citizen allowance of Rs. 4,000 has been continued while the eligibility age is 68 years. 

However, the government has continued with the controversial constituency development programme and Rs. 50 million is allocated for each election constituency. "To address the local needs of development and construction expected by the people of the constituency through the people's representatives, I have proposed a parliamentary area infrastructure development programme by allocating Rs. 50 million," said Dr. Mahat. 

Likewise, Citizen Pension Scheme will be implemented through Citizen Investment Trust to include all self-employed Nepalis in the pension plan. 

 Published in The Rising Nepal daily on 30 May 2023. 

MoF In Need Of Burden Sharing

 Since his appointment as the Finance Minister more than one-and-a-half months ago, Dr. Prakash Sharan Mahat has, on an average, attended two events and seminars a day. He had to attend pre-budget programmes organised by various business, economic and professional organisations. 

He was in a rush each time. He even asked most organisers to keep the programme short. He reached the programme venue on time and left the event immediately after his speech, sometimes leaving the audience bewildered. He listened to the suggestions, demands and reservations related to the budget for the fiscal year 2023/24 at his office in marathon meetings. 

While a finance minister's public engagements are needed in a democratic society, this hectic schedule could impact the process of policy-making, budget formulation and government coordination. 

The budget-formulation process starts in January but the budget is presented to the federal parliament at the end of May every year. The final month witnesses the publication of principles and priorities of the budget, government policy and programmes for the next fiscal year, economic survey and the budget. 

Rigorous involvement

All these activities require rigorous involvement of the finance minister. This demands an aide to him, probably in the form of a state minister at the Ministry of Finance (MoF) as it is also considered as the 'ministry of the ministries'. 

MoF has the responsibility of collecting the revenue estimated by the budget, and managing other resources, including foreign and domestic loans and grants, implementing budget and ensuring utilisation of capital allocation. All these sectors have remained pathetic for the past several years. This ministry also deals with development partners and publishes development cooperation report. 

Similarly, critical agencies like the Department of Customs, Inland Revenue Department, Financial Comptroller General’s Office, and Public Debt Management Office are in operation under the MoF apart from other nine divisions. Regulators such as the Securities Board of Nepal and Insurance Authority also work closely with this ministry. So does the National Planning Commission. 

This is such a ministry where organisations and people make rounds to get their programmes and projects succeeded in obtaining budget allocations. Since tax discounts, grants and concessions to the businesses are also announced and implemented by this ministry, businesspeople and industrialists also make frequent visits there. 

Meanwhile, the role of the finance minister becomes more critical in the times of economic crisis. Underperformance in revenue collection has serious repercussions on the spending which has also affected development works across the country. Businesses are facing crises in three major sectors of the economy– manufacturing, construction, and wholesale and retail trade—which  are projected to witness a negative growth by more than 2 per cent. 

Industries are running less than 40 per cent of their capacity while many cottage industries and trading businesses have been shut down for the past six months. Everyone is looking at the MoF and the central bank for solutions. 

A culture has been developed over the past years that everyone wants to put their demands and recommendations in front of the finance minister and the latter also doesn't want to lose the opportunity to be friendly with them. This trend should be changed. 

Since the budget and policies are political documents as well, the finance minister should lead the process while high-level bureaucrats should be given the responsibility. They should be responsible for the performance in terms of executing plans and programmes, mobilisng budget, hearing the public and private sector grievances on development financing, and reporting to the ministers.

Meanwhile, there is a growing trend to transfer the cadres of the MoF who are knowledgeable and skillful in economic affairs than other offices. This tendency should not be given continuity since such employees who reach there due to the blessings of the minister or certain political party would only cause damage to the institution and the economy. 

The finance minister should focus on policy-making and budgetary work while the state minister for finance should interact with stakeholders, line ministries and subnational government structures. The latter can be useful in attending programmes, monitoring budget execution, and mobilising agencies responsible for it. 

Good chemistry

However, given the previous trend of appointing the minister of state just to manage political leaders or appease the ruling parties, one could doubt the effectiveness of having additional portfolio at the taxpayers' expenses. Most state ministers in the previous governments were less effective in policy matters and public issues. 

To avoid such unproductive affairs, the finance minister should be given the authority to select his subordinate in consultation with the prime minister. There must be a good chemistry between the two leaders at the ministry even when they belong to different political parties. 

The finance minister's critical time shouldn't be spoilt by the mundane affairs like inaugurating a programme or visiting a 'development project' implemented by a non-governmental organisation. 

The country is reeling from an economic crisis which demands more time and attention of the finance minister. He should be sitting with the concerned agencies and experts to find a solution to the current crisis, mobilise more revenue and capital budget, cut down recurrent expenses, up-scale the capacity of the civil servants, and enable local governments in development works. 

Attracting more foreign investment and tourists, boosting the confidence of the business community in the country and exporting goods, and enhancing the tax base are urgently required at this critical situation. The finance minister should be busy devising effective policies and programmes. Rest could be left to the discretion of the minister of state and the bureaucracy. 

 Published in The Rising Nepal daily on 27 May 2023. 

Budget to be unveiled today

Kathmandu, May 28

Finance Minister Dr. Prakash Sharan Mahat is to present the budget of the coming fiscal year 2023/24 at the joint session of the Federal Parliament on Monday as per the constitutional provision to announce the estimates of government income and expenditure on Jestha 15 (end of May) every year.

The size of budget for the next year would be around Rs. 1688 billion, as per the ceiling the National Planning Commission (NPC) set earlier in February this year. As per the Economic Procedures and Financial Accountability Act-2076, the planning body should set the ceiling of the budget by Magh 15 (end of January) every year. It takes into account the estimates of the availability of resources and expenditures for the next three years while setting the limit for the budget.

The size of next year's budget is going to be around 9 per cent larger than the budget of the current FY 2022/23 - Rs. 1549.99 billion (adjusted budget size from the initial announcement of Rs. 1793 billion).

Presenting the Principles and Priorities of the Budget, FM Dr. Mahat had said that he would accord priority to agriculture, industry, education, physical infrastructure and large projects with strategic importance. Increasing production and productivity in agriculture and industry sector to make the country self-reliant and ensuring food security as well as effective implementation of land-use policy will get priority in the budget.

Similarly, promotion of start-ups, information technology, hydroelectricity, and development and export of goods and services that have high comparative advantage and competitive benefits are also in the priority.

Other areas of priority are increasing access and quality of education, enhancing people's access to basic health services, control of pandemic, treatment and immunization.

In infrastructure, Kathmandu-Terai Expressway, East-West Highway, North-South Corridor, and connectivity to all centres of local bodies are the areas of priority. Likewise, to support in further revival of tourism sector promotional programmes would be announced. Minister Dr. Mahat had expressed his commitment that there would be no shortage of funds for the national pride projects.

Similarly, investment-friendly environment creation, reforms in service delivery, promotion of good governance and zero tolerance against corruption have also got their way into the priorities of the budget.

However, FM Dr. Mahat would face shortage of resources to implement the programmes and projects as the country is reeling from the economic crisis and government is facing a tough challenge even to manage funds to run everyday activities. By Saturday, the government has collected Rs. 824.6 billion revenue which is just 56.53 per cent of the total annual target of Rs. 1458.6 billion. But the government expenditures have reached Rs. 1098.2 billion creating a gap of Rs. 274 billion in its income and expenditures. Meanwhile, the capital expenditure has remained meager with just 35.6 per cent (Rs. 135.4 billion) of the annual target of Rs. 380.3 billion.

However, through the mid-term review of the budget, finance ministry had lowered the revenue estimates to Rs. 1244 billion. The government is running short of funds even to implement its adjusted budget of Rs. 1549 billion.

Meanwhile, according to the National Statistics Office (NSO), the country will achieve the economic growth of only 1.6 per cent with major economic sectors like manufacturing, construction, and wholesale and retail trade witnessing negative growth of more than 2 per cent. It means there will be negative impact on employment, production and contribution to the economic growth of the country. 

 Published in The Rising Nepal daily on 29 May 2023. 

Business community awaits policy stability for higher growth in republic

Kathmandu, May 27

On May 28, 2008, the newly elected Constituent Assembly declared Nepal a Federal Democratic Republic, abolishing the 240-year-old monarchy. Business and investment in the country has always been critical due to political and policy instability, conflict, energy crisis and disasters. Although the country had adopted liberal economic policies about 18 years back in early 1990s, the shift had moderate impacts on the business and industry. The Rising Nepal talked to four business leaders about the impacts that the new system had on it.

Bhawani Rana, Former President of Federation, Federation of Nepalese Chambers of Commerce and Industry (FNCCI)

Since the business community also participated in the struggles and movements that brought about the changes including the republic. There has been a slight change in the political leaderships as they have started to talk about the economic agenda, but that is not getting priority in the practice. For an instance, many manufacturing industries have long been on the verge of collapse while the others are running under-capacity but governments have shown no concerns.

There has been a change we could see, but general as well as business people have not felt it. It’s not that we don't have good policies; there are better ones as well. But their implementation is very poor.

The liberal policies that the country adopted in 1990s paved the way for the flourishment of banking, aviation, and other industries. We could see positive impacts on hydroelectricity and industries like cements in the republic era. But this positive progress has now been halted due to policy instability.

There is no alternative of the republic, we need to make it successful together but there is a need of reforms in the political parties and governments’ performance. Nepal should learn from Bangladesh to advance the economic and business agenda forward and make people feel the positive impact of the new system through growth and development.

 

Kamlesh Kumar Agrawal, Senior Vice President, Nepal Chamber of Commerce (NCC)

After the establishment of the Federal Democratic Republic, Nepal has taken a leap in the path of economic development.

In seven/eight years after the establishment of the Federal Democratic Republic, the economic activity in the country expanded, and the creation of an investment climate encouraged domestic and foreign investors to increase investment. The size of economy reached about Rs. 5.4 trillion.

However, after the devastating earthquake of 2015, the pace of economic development in the country has slowed down.

After the 2015 earthquake, Nepal have had to face different challenges. The economic activity of Nepal has been affected due to the unofficial Indian blockade after the promulgation of the constitution, the COVID-19 pandemic and Russia-Ukraine war.

After the establishment of the Federal Democratic Republic, due to the positive business environment, investment has increased in various sectors including hydropower and cement industries. As a result, today Nepal has started selling electricity to India and has also started exporting cement by becoming self-reliant on it.

Currently, Nepal is under the problems of economic recession due to internal and external reasons. The production of the industrial sector has reduced due to fall in consumption. High interest rates have affected the businessmen and investment.

 

Hari Bhakta Sharma, Former president of Confederation of Nepalese Industries (CNI)

Nepal has made significant achievements in the development of hydropower and cement industry over a decade period.

Due to the promotional programme of the government in the hydropower and cement industry, Nepal is in the position to export electricity during the rainy season, along with cement. This is an achievement for the country’s economy.

However, industrial sector is still facing power tripping frequently. Nepal is still importing power from India to meet the demand during the summer season.

There was no progress in the investment in the productive sectors after the promulgation of constitution in 2072 BS as the government introduced laws and policies to ease import instead of promoting manufacturing industries inside the country.

After the promulgation of the constitution, the government introduced many acts and laws. But the government could not bring a policy to promote the manufacturing industry in accordance with the expectations of the private sector to increase domestic production. This is a failure in promoting domestic and foreign investors and accelerating economic activities.

The government should not delay in amending the policies and acts to create a business-friendly environment and encourage the private sector to increase their investment in productive sectors.

 

Satish Kumar Bohra, Managing Director, Bohra Group

Policy stability is the first element for the growth of business and industries but the private sector in Nepal has been deprived of the fruits of republic system due to political and policy instability. A policy that was announced by a government might be scrapped or changed by its successor whereby there could be a policy while initiating a business and another one while launching business operations.

The private sector needs policy stability for 10-15 years. However, the government and political leadership in Nepal lack long-term vision for the promotion and development of business sector. Meanwhile, the government should also estimate the number of industries or size of production that the country needs since the herding in a sector has caused problems in various sectors including cement and steel industries.

Solution is simple yet difficult to achieve: political parties should come together and form a single voice on economic agenda and business promotion. Budget could be a starting point to have national consensus so that even if the government is changed in the same fiscal year, the new one treats it as its own document. Even if a single industry is closed, it’s a national loss as it directly affects employment and revenue. 

 Published in The Rising Nepal daily on 28 May 2023. (Prepared jointly with Laxman Kafle)

PM’s India visit itinerary fixed

Kathmandu, May 27

Prime Minister Pushpa Kamal Dahal ‘Prachanda’ is undertaking his maiden foreign trip as the PM of Nepal with a 4-day visit to India from Wednesday, 31 May 2023.

This is an official visit happening at the invitation of the Prime Minister of India, Narendra Modi. The Prime Minister will be accompanied by his daughter Ganga Dahal, ministers, secretaries, and senior officials of the government, the Ministry of Foreign Affairs (MoFA) informed in a statement on Saturday.

However, the members of his delegation for the India entourage would be finalised by a meeting of the Cabinet on Sunday.

This is the fourth visit of Prime Minister ‘Prachanda’ to India as the Prime Minister of Nepal.

During the visit, PM Prachanda is scheduled to pay a courtesy call on President of India, Droupadi Murmu, and Vice-President, Jagdeep Dhankhar.

According to the MoFA, he will hold delegation-level talks with his Indian counterpart Modi at Hyderabad House, the state guest house of the PM of India which is used for holding meetings with visiting foreign dignitaries, on Thursday, June 1. A joint press meet by the PM duo would follow the meeting.

PM Modi will host a luncheon in honour of PM Prachanda and his delegation.

The Prime Minister will address Nepal-India Business Summit in New Delhi jointly organised by Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Confederation of Indian Industry (CII) and interact with business leaders of both countries.

He will also interact with the Nepali community in India over a welcome reception being hosted by the Ambassador of Nepal to India, Shankar Prasad Sharma.

PM Prachanda is also scheduled to visit Ujjain and Indore, Madhya Pradesh before returning to Kathmandu on June 3. The MoFA said that the visit will further strengthen the age-old, multifaceted, and cordial relations between Nepal and India.

The government has been making preparations for the visit for the last couple of months. As per the agenda sent to the Prime Minister's Office by the line ministries, the upcoming visit would have a long list of agenda, from electricity trade and investment to air route, to discuss between the two countries.

Nepal is in need of Indian cooperation for electricity trade with Bangladesh including a separate transmission line to the coastal country through India. Likewise, there are chances of inking agreement for the development of large hydropower projects like Phukot Karnali.

Similarly, two-way air-routes from Bhairahawa and Mahendranagar is another agenda that Nepal wants India to agree upon. Earlier in 2019, the Civil Aviation Authority of Nepal and Airport Authority of India had agreed to develop new cross-border air-routes from Janakpur, Biratnagar and Mahendranagar. However, there has not been much progress in the implementation part.

Meanwhile, as the second international airport is in operation in Bhairahawa, Nepal needs an air entry route from the western part of the country.

A memorandum of understanding between Nepal and India could also be signed for the development of the Integrated Check Post and Inland Container Depot (ICP/ICD) in Dodhara Chandani Municipality during the visit.

Earlier this month, the government had approved the Environment Impact Assessment report of the project to be developed at the western end of the country. According to the Nepal Intermodal Transport Development Board (NITDB), an agency under the Ministry of Industry, Commerce and Supplies that has the responsibility to build and facilitate the construction of trade infrastructure, Indian support was being sought for the development of the trade infrastructure that would cost about Rs. 20 billion for the first two phases.

Inauguration of Nepalgunj ICP, Biratnagar Rail Yard and stone laying of Bhairahawa ICP could also happen during the visit.

Similarly, agreement on cross-border digital payment is another agenda. According to Indian media reports, the two countries have already prepared the draft of the agreement and it would be signed during the visit. This agreement would allow Indian tourists to pay in Nepal via their e-payment wallets.

 Published in The Rising Nepal daily on 26 May 2023. 

AFCAN forms new board of directors under Basnet

Kathmandu, May 25

The special general meeting of the Association of Former Career Ambassadors of Nepal (AFCAN) held on Wednesday has formed a new board of directors of the organisation under the chairmanship of Bhagirath Basnet.

The five-member board of directors includes vice-chairman, Mohan Krishna Shrestha, general secretary, Jhabindra Prasad Aryal, treasurer, Niranjan Man Singh Basnyat, and member, Prakash Kumar Subedi for a 2-year tenure.

The organisation aims at making necessary contribution to make the relations established with the countries of the world harmonious, stronger, comprehensive and reasonable.

In addition to protecting and promoting Nepal's national interest, the AFCAN also acts as a think tank to assist the government in policy formulation and implementation of Nepal's economic diplomacy, human rights, environmental protection and other aspects for development and progress. 

 Published in The Rising Nepal daily on 26 May 2023. 

FNCCI seeks UN assistance to boost industry, economy

Kathmandu, May 25

President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Chandra Prasad Dhakal, has sought the support of development partners in formulating the strategy in managing the current economic crisis, creating an investment-friendly environment, developing skilled manpower and creating more jobs.

He proposed a deeper cooperation between the business community and development partners during a meeting with Hanaa Singer-Hamdy, the UN Resident Coordinator for Nepal, at the FNCCI secretariat on Thursday.

The Sustainable Development Goals (SDGs) and cooperation in minimising the impact of Nepal's graduation from the Least Developed Countries (LDCs) on business were the key agenda of discussion. There was also a discussion for capacity enhancement of small and medium enterprises, production of skilled manpower, cooperation with the private sector and the government.

Dhakal stated that the FNCCI could be a close partner of the government and the UN in achieving sustainable development goals because it has a strong network throughout the nation and a structure that can reach the grassroots level.

On the occasion, Singer-Hamdy said that she took the issues raised by the president of FNCCI very seriously.

She said that the SDGs and upgrading LDCs are a matter of special interest. She said that the private sector, government and the United Nations can cooperate while preparing a strategy to facilitate the graduation. 

 Published in The Rising Nepal daily on 26 May 2023. 

MoFA honours 10 veterans

 Foreign Affairs Day marked

 Kathmandu, May 24

The Ministry of Foreign Affairs (MoFA) on Wednesday honoured its veteran servicemen for their contributions to the field of foreign affairs.

At a programme organised by the ministry at its multipurpose building at Tripureshwor on the occasion of the second Nepal Foreign Service Day 2023 in Kathmandu, Minister for Foreign Affairs, Narayan Prakash Saud, felicitated those who joined the job of foreign service between 2018-2023 BS (May 1961 to April 1966).

Recipients of the felicitation are Sundar Nath Bhattarai, Kedar Bhakta Shrestha, Narsingh Man Singh Pradhan, Purushottam Lal Shrestha, and Dr. Shashi Prasad Bam Malla. Likewise, Badri Prasad Khanal, Govinda Dev Panta, Ram Hari Khadka, Krishna Kumar Subedi, and Shree Krishna Gopal Salike are also among those being honoured.

The MoFA also honoured two foreign affairs professionals – Prakash Kumar Subedi and Ram Singh Thapa – who retired from their job in the last one-year period.

The celebration was made to mark the Nepal Foreign Service (Formation and Classification) Rules, 1961. The MoFA said that May 24 will be celebrated every year as the Foreign Service Day in remembrance of the day when the Foreign Service was legally codified in Nepal.

Addressing the programme, Foreign Minister Saud said that the foreign affairs professionals should work for the achievement of national interest at the policy, knowledge and execution fronts.

"We need to learn from the happenings in our immediate neighbourhood and far away countries. It’s our responsibility to take care of Nepalis abroad and rescue those who are in trouble and in need of help," he stated.

Minister Saud also said that integrity does not come from better facilities, and motivation is the result of dedication and the urge to serve the country and its people.

Chief Secretary, Shankar Das Bairagi, maintained that foreign affairs professionals have been working to achieve the national interest at the international level.

But he said that since the country is facing economic challenges, there are fewer chances of organizational expansion. "We have to work for the wise and maximum utilisation of available resources," he said.

According to him, Nepal is still weak in negotiations at international level so there is a need to enhance capacity in this regard.

Bharat Raj Paudyal, Secretary of the Ministry of Foreign Affairs, said that the foreign affairs professionals had a lot to contribute to the country's promotion and development.

He also informed that the second edition of Professor Yadu Nath Khanal Lecture Series would be held within a month. The MoFA had launched the series last year in memory of former foreign secretary late Prof. Khanal who contributed to institutionalising the foreign affairs service.

 Published in The Rising Nepal daily on 25 May 2023. 

NEEK resumes transformer export to Bhutan

Kathmandu, May 24

Nepal Ekrat Engineering Company Limited (NEEK), which has been manufacturing, transporting and trading transformers at the international level for almost three decades now, has again started exporting transformers to Bhutan.

The export of the machines to Bhutan was stopped due to the outbreak of the coronavirus pandemic three years ago.

After the electrification work intensified with the end of the pandemic, Bhutan Power Corporation Limited (BPC) called for a contract for the purchase of transformers. NEEK was selected in the bid, beating various countries including India, the company said in a statement on Wednesday.

According to the contract, the production and export of transformers have already started, said Kush Kumar Joshi, Managing Director of the company.

According to the contract agreement, the export of 160 transformers from 15 kVA to 1250 kVA capacity worth Rs. 141.4 million (US$ 1.7 million) has started, Joshi said. "Nepali industry can also earn enough foreign exchange from the export and contribute significantly to the country's economy."

He said that if the government provides discounts on export tax and other concessions, it is possible to earn foreign exchange by exporting transformers to South Asian countries including Bhutan. In addition to expanding the domestic market, Joshi informed that they are also studying the wide possibilities of foreign exports.

Recently, NEEK had supplied more than 7,000 transformers to the Nepal Electricity Authority. It's production plant has an annual production capacity of 18,000 transformers. 

Published in The Rising Nepal daily on 25 May 2023. 

Double amputation no barrier for this Sagarmatha summiteer

Kathmandu, May 23

Tuesday proved to be a very busy day for Hari Budha Magar, a 'double-amputee above knees', who returned to the Capital after conquering Sagarmatha with a new record. He reached the top of the world with prosthetics and successfully conducted the journey down to Camp 2.

He received a grand welcome at the Tribhuvan International Airport by Minister for Culture, Tourism and Civil Aviation, Sudan Kirati, his relatives and well-wishers, was taken to Thamel in an open roof vehicle where he interacted with journalists, got another welcome by Prime Minister Pushpa Kamal Dahal Prachanda at his office, and rushed to his residence to celebrate the birthday of his father, Purai Budha Magar, 73.

Meanwhile, President Ramchandra Paudel sent an appreciation letter to the record-holder climber from Rolpa district in Lumbini Province. President Paudel congratulated him for his dedication, courage and perseverance and said that his feat would remain as a motivating factor for future generations. President's daughter, Awagya Paudel and Press Advisor, Kiran Pokhrel, handed over the letter to Hari at a media interaction in Thamel.

Hari and his team successfully reached atop Sagarmatha, 8849 metre, on Friday, May 19.

 

Life-threatening feat

However, things in the mountains were dreadful and life-threatening.

Hari was slower than other able-bodied people, needed more help from his colleagues and Sherpa guides.

"Many times I felt like abandoning the expedition to Sagarmatha in the middle and return to the base camp. But I was destined to succeed and set a record," Hari, 43, said with the journalists. The greater urgency was felt at the Balcony, near the top of Sagarmatha. His oxygen was finished and was exchanged with a new cylinder but after a while he felt difficulties in breathing, legs becoming colder and hand numb.

"I thought it could be the last moment. I remembered my 10-year-old son who was very anxious about my Everest expedition," he said, his eyes full of tears.

Later Mingma checked his oxygen cylinder to find that it had a leakage.

His brother Nanda Budha Magar got his hand broken after being hit by a stone. Hari was airlifted to Sagarmatha Base Camp in a chopper from Camp 2. Since the weather window was longer this year, there was no traffic jam there.

According to Hari, the international media have portrayed the Himalayas, specially Sagarmatha, as a dreadful and forbidding mountain, sending terror to the young members of the families of the mountaineers that dream to climb the mountain.

And, they were partly true. The mountains are highly unpredictable. Hari and his team had to stay at the base camp for 18 days waiting for the weather to clear.

"It was not me who climbed the mountain. It was a team work. Without my team, the success wouldn't have been happened," said Hari appreciating the support of his 25-member team with tearful eyes.

 

A pride of being a Nepali

Buddha, Gurkha and Sagarmatha. The three elements that make the international identity of Nepal and its people.

Hari has all three of them. "I am a Gurkha, I am a Buddhist, and I just conquered Sagarmatha," he remarked.

He grew up watching Dhaulagiri and Sisne peaks in the Himalayas from the orchard of his home in Mirul Village of Rolpa. "As every Nepali child, I was told the story of Sagarmatha, Edmund Hillary and Tenzing Norgay many times which only increased my interest in the mountains," said the Gurkha veteran who had lost his both legs in an explosion in Afghanistan in 2010. He was deployed there by the British Army. 

But his job at the British Gurkha Army couldn't offer any spare time needed to climb Sagarmatha. He had no time, training and funds to realise his dream. Later, when he was psychologically ready for the expedition, Government of Nepal banned people without both legs and eyes from climbing Himalayan mountains. It again, delayed the adventure.

He had earlier successfully climbed Mont Blanc (4810 metres) in Europe, Kilimanjaro (5895m) in Tanzania, Africa, Chulu Far East (6,059m) and Mera Peak (6476m). His success at Mera Peak in 2017 made him the first above-knee double amputee to summit a mountain higher than 6,000 metres. He also has records for becoming the first person in the category to reach Sagarmatha Base Camp and skydiving.

 

Opportunity to people with disability

Now, Hari wants to launch a foundation to support people with disability with skill, courage and livelihood. His areas of interest are sports and adventure, empowerment, and mountain and Sherpa community.

"There is a need to change the mindset of the policy makers as well. People with disability don't want sympathy but opportunity in their life. There is a great need of running an awareness campaign," he said.

He stated that people judge them for their disability or the shortcomings which should be changed as early as possible. 

Published in The Rising Nepal daily on 24 May 2023. 

EU-Nepal TIP organises workshop for trade officials

Kathmandu, May 23

The European Union-funded EU-Nepal Trade and Investment Programme (TIP) is organising a workshop for trade officials of the Government of Nepal to enhance the capacity of officials of trade-related government agencies for trade policy-making, implementation, and negotiations.

The ‘Introductory Training Programme on International Trade and Trade Policy’ that kicked off in Lalitpur the other day is the first in a series of planned trade-related skill-enhancement workshops for Nepali officials under the EU-Nepal TIP’s support.

The Centre for WTO Studies (CWS), Centre for Research in International Trade (CRIT), and the Indian Institute of Foreign Trade (IIFT) are supporting the training.

According to the TIP, 26 government officials, including seven female officers, are taking part in the five-day workshop. Officials representing the Ministry of Industry, Commerce and Supplies, Ministry of Foreign Affairs, Ministry of Agriculture and Livestock, Department of Food Technology and Quality Control, National Bureau of Standards and Metrology, Nepal Rastra Bank, National Planning Commission, Nepal Administrative Staff College, among others are attending the workshop.

The workshop aims at upskilling Nepali trade negotiators and policymakers to ensure their effective participation in the WTO meetings, WTO Dispute Settlement Mechanism and multilateral/bilateral trade negotiations. It also has an objective to enhance the understanding of key trade issues among concerned officials.

Agenda of the training are international trade and WTO from Nepal’s perspective, WTO Agreement on Agriculture, WTO Agreement on Agriculture Domestic support, WTO and food Security, WTO Agreement on Agriculture-market access and export competition, and the trade-related data and market analysis.

Similarly, World Integrated Trade Solution and Trade Data of Nepal, analysis of trade trends, Nepal’s WTO commitments, WTO dispute settlement mechanism, Least Developed Country (LDC) graduation-related issues, trade facilitation in services and global value-chains, stakeholder consultation and Trade Related Intellectual Property Rights are also among the topics of the workshop.

Gobinda Bahadur Karkee, Joint Secretary of the Ministry of Industry, Commerce, and Supplies, said that an international-level workshop like this would help enhance the trade negotiation capacities of Nepali trade officials at a time when challenges and opportunities exist in international trade. 

Published in The Rising Nepal daily on 24 May 2023. 

Nepal incurs excessive trade deficit with India, China

Kathmandu, May 21

Nepal's international trade has become a story of imbalance with a huge gap in trade surplus and deficit with its major trade partners. In the last 10 months of the current Fiscal Year 2022/23, the country's highest trade surplus is just Rs. 903 million with Norway. On the contrary, highest trade deficit is Rs. 753.3 billion with India.

According to the latest statistics of the Department of Customs (DoC), top countries that Nepal has trade surplus with are Algeria, Niger, Cambodia, Uruguay, Chad and Latvia with whom it has negligible trade out of its total Rs. 1466.2 billion.

In the same period of last FY 2021/22, Nepal's size of foreign trade was Rs. 1778 billion with the imports of Rs. 1604.6 billion and exports of Rs. 173.3 billion.

There is a higher drop in exports than imports. Exports declined by 24.5 per cent and imports fell by 16.9 per cent compared to the previous year.

Nepal imported goods worth Rs. 844.53 billion from India while its exports were of just Rs. 91 billion – 9.2 times higher. In the last 10 months (mid-July 2022 to mid-May 2023), Nepal's share in export is 8.93 per cent – almost one percentage point down from the same period last year. The share of export in 10 months of FY 2021/22 was 9.75 per cent.

Likewise, Nepal has witnessed a huge deficit with China, Indonesia, United Arab Emirates, Argentina, Malaysia, Ukraine, Australia and Qatar.

Trade with China is more pathetic with the exports worth just Rs. 1.3 billion against the import of Rs. 179.2 billion. This is the gap of 137.8 times, making trade with China one of the most unbalanced among the larger trade partners.

However, perhaps Nepal is witnessing the most unbalanced trade with Argentina where imports are 2154 times higher than the exports. Imports and exports from the South American country are Rs. 21.5 billion and Rs. 1 million respectively.

Similarly, Nepal's trade deficit with Indonesia is Rs. 35.4 billion, UAE Rs. 27.7 billion, Malaysia Rs. 20.5 billion, Ukraine Rs. 16 billion and Australia Rs. 15.5 billion.

Nepal's largest export partners are India, United States of America, Germany, United Kingdom, Turkey, Canada and France. Nepal exported goods worth Rs. 15.5 billion to the USA, Rs. 3.4 billion to Germany, Rs. 2.6 billion to the UK, and Rs. 1.6 billion to Turkey. 

Published in The Rising Nepal daily on 22 May 2023. 

'Barahi Kathmandu' comes into operation in Thamel

Kathmandu, May 21

A new hotel 'Barahi Kathmandu' under Barahi Hospitality has come into operation in Thamel, Kathmandu, from Sunday. The four-star hotel has 80 rooms including eight suites and 72 deluxe rooms.

The offer fee for the deluxe room is US$ 100, said Yogendra Thapa, corporate director of Barahi Hospitality.

The hotel, located at Kaiser Mahal juncture of tourist hub Thamel, King's Way, Lajimpat and Jamal, has a coffee shop, restaurant, bar, private dining hall, and a meeting hall that can accommodate 120 people is being prepared in a lounge and theatre setup in a few weeks.

There is an 'infinity swimming pool' on the seventh floor of the hotel. It is four-foot-deep and is spread over about 1,100 square feet. The hotel complex will house offices and various shops from the ground to the third floor, remaining six floors will have hotel facilities.

According to Thapa, Rs. 1.4 billion is invested in the hotel including shopping complex.

The Barahi Hospitality has been operating hotels in Pokhara and Chitwan. Hari Prasad Poudel had started a 9-room Paradise Guest House on the lakeside of Pokhara four decades ago, and later added facilities to the same hotel and named it Hotel Barahi.

Barahi Jungle Lodge in Chitwan, Hotel Barahi in Pokhara, Byanjan Restaurant, Sarangkot Mountain Lodge, Awas Pokhara, The Beach Bar and Lodge are running under the investment of Barahi Group. It is also constructing a five-star hotel with a conference hall having capacity to accommodate 1,200 in Sedi in Pokhara. 

Published in The Rising Nepal daily on 22 May 2023. 

First-double-amputee-above-knees Hari Budha conquers Mt. Everest

Kathmandu, May 20

Hari Budha Magar, 43, has successfully climbed the world's highest peak, Everest, on Friday afternoon, May 19, and set the world record of being the first 'double amputee above the knees' to conquer the formidable mountain.

He climbed the mountain with the help of prosthetic legs. He achieved this history making success after about 5-year's efforts including successful climbing of Mera Peak (6,476m), Mont Blanc (4,810m), Chulu Far East (6,059m) and Kilimanjaro (5,895m). He is the first 'double amputee above the knees' to reach the Everest Base Camp and skydive over Everest.

After reaching the peak of Everest, he shouted with joy, "We have succeeded", his team informed in a statement on Saturday evening. Krish Thapa of HST Adventures is the expedition leader for Hari's climb. Thapa has served as a mountain troop leader of the British Special Air Service (SAS) for 24 years.

Born in Mirul Village of Thabang Rural Municipality in Rolpa district, Budha Magar served in the British Army's Gurkha Regiment for 15 years. He lost both his legs above the knee in 2010 during the war in Afghanistan while he was in the British Army.

Over a satellite phone call, made possible by NSSL Global, to his team, he added: “That was tough, harder than I could have ever imagined. We just had to carry on and push for the top, no matter how much it hurt or how long it took."

“If I can climb to the top of the world then anyone, regardless of their disability, can achieve their dream," he added.

According to him, when things got really tough it was the thought of my amazing family and everyone who's helped me get onto the mountain that pushed me to the top.

The whole team is safely heading back to the base camp, Hari's team informed in a statement.

Hari and his climb team summited Everest 70 years after Edmund Hillary and Tenzing Norgay became the first people to stand atop the world's highest peak in May 1953. 

“I first planned this expedition back in 2018, but it feels a little more special to celebrate the 70^th anniversary of Everest's first summit, with another world’s first,” said Hari.

Through his climb, Hari aims to change perceptions on disability and inspire people to climb their own ‘mountains’ no matter the adversity that stands in their way.

“My big goals where simply to change perceptions on disability and to inspire other people to climb their own mountains. No matter how big your dreams, no matter how challenging your disability, with the right mindset anything is possible,” he said. 

Published in The Rising Nepal daily on 21 May 2023. 

Minister Shrestha assures security for MCC project implementation

Kathmandu, May 20

Deputy Prime Minister and Minister for Home Affairs, Narayan Kaji Shrestha, has assured the Millennium Challenge Corporation (MCC) for the necessary support from his ministry and chief district officers of various districts along the proposed cross-border transmission line to be developed with its support in order to ensure successful implementation and timely completion of the project.

In a meeting with Jonathan Brooks, Deputy Vice-President of Europe, Asia, Pacific, and Latin America programmes for the Department of Compact Operations, on Saturday, DPM Shrestha pledged all possible support to expedite the mega project that includes a cross-country transmission line and road maintenance.

The US$ 630 million, $500 million from the MCC and $130 million from Nepal–programme, aims at developing large transmission lines, including Butwal-Gorakhpur cross-border transmission facility, and rehabilitate strategic roads. The Electricity Transmission Project will build 312 km of 400 kV electricity transmission lines and three substations and provide technical assistance for the power sector in Nepal.

Likewise, the Road Maintenance Project aims to enhance current practices in the maintenance of Nepal’s strategic road network and will provide technical assistance to the Department of Roads (DoR) and Roads Board Nepal.

The projects are being implemented by the Millennium Challenge Account–Nepal, an agency formed by the Government of Nepal.

According to Govinda Bhattarai, Secretary of the Ministry of Home Affairs (MoHA), who was also present at the meeting, informed that DPM Shrestha told the delegation of the project that there would be sufficient and necessary support from the MoHA to complete the MCC project on time.

Brooks is on a visit to Nepal to get the updates of the projects and sort out the constraints it is facing in course of implementation.  

Bhattarai said that in the meeting, Brooks sought assistance from the ministry in the acquisition, security and coordination of land required for the MCC project.

He asked for assistance from the MoHA in the areas of land acquisition, security and coordination to be provided for the future activities of the project where the involvement of the chief district officer is needed. 

Published in The Rising Nepal daily on 21 May 2023. 

Memories from the pandemic

Book: Lost Horoscope: And Other New Poems (2023) by Yuyutsu Sharma. Publisher: Nirala Publications, New Delhi. Pages: 72. ISBN: 978-81-957816-3-8 (hardcover).

 

Crises are fertile grounds where literary edifices are built upon, maintained and sustained. After about 18 years since the ending of Maoists armed conflict, books are being written, stories are being told, poems are being created, music is being composed and movies are being made. Writers and communicators continue to create new piece of literature or entertainment with their ideas based on the 2015 earthquake, Indian blockade, Terai floods and even Panchayat era that ended more than three decades ago and Rana regime that ruled the country for 104 years till 1951. Nepali writers also have created literature on international crisis and challenges like the Afghan War, Cold War and Nepali's plight in their work destination.

Continuing that tradition, a new book 'Lost Horoscope: And Other New Poems' by Yuyutsu Sharma brings back the bitter memories from the early days of the coronavirus pandemic when people locked themselves inside the four walls of their houses willingly or by the force of the government. It was difficult time when people felt trapped, immobile and helpless as there was no one to take them out of the crisis, they have to rely on their own instincts in most of the cases.

"Half a century later

caught up in a deadly fever

in the Himalayas

twisting my limbs

in a bed moist from

my sweat, my head

throbbing from the dismal

forecasts and my imminent doom,

the revelations of the horoscope returned. "

 

Sharma gives a vivid detail of the pandemic time and hardships people faced in the quarantines during lockdowns. People were dying due to the virus and every other individual was scared that they would be the next to be taken to the 'ghat' – the cremation point.  They were having hallucinations. There was shortage of foods and medicines, yet the poet finds happiness and satisfaction from what he got.

"Dalda milk rusks dipped

in cups of bland tea and

relished like finest treats from Paradise."

 

The book is divided into three sections: lost horoscope, jasmine jewels and out again. The latter two sections more often talk about love, affection and travel. Sharma's poem feature women from China, USA and other countries. Readers can also find instances of humour in his poems. The one that he tells after meeting his Beijing moderator can be a good example:

"When sixth glass arrived,

her Chinese husband turned into an ex-husband,

and a little later,

an ex-student

now living back home, in Australia."

Another humour is found when he meets a girl from Chengdu, China who had visited Nepal. The poet minutely observes the girl and begins to appreciate her features but the girl addresses him as 'Dai' – an elder brother. The poem ends with the line - "I was wondering how to address you." Likewise, in California, another girl finds him 'sweet' but can't make love because she has stitches in her vagina.

In the long inaugural poem 'Lost horoscope', the poet also talks about religion, spirituality and the things which he relied upon during the difficult time. The book has many instances when the poet talks about spirituality and supernatural powers. Readers can find lots of love stories in the poem which have featured strong emotions. Meanwhile, he talks about the beauty of Pokhara, Annapurna and Himalayas of Nepal as well as his childhood memories connected with his grandmother and birthplace.

Sharma has already published 10 poetry collections before the 'Lost Horoscope' including The Second Buddha Walk, Nepal Trilogy, Quaking Cantos: Nepal Earthquake Poems, and Space Cake.

Published in the Friday Supplement of The Rising Nepal daily on 21 May 2023.